Flashcard #10 - Taxes

Front

What is the primary purpose of a W-2 form in the context of filing taxes?

Back

To report the amount of federal, state, and other taxes withheld from an employee's paycheck.

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DOK Level 2: Skill/Concept

Front

Which tax form is typically used by an individual to file their annual income tax return?

Back

Form 1040

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DOK Level 2: Skill/Concept

Front

What does the term "taxable income" refer to?

Back

The amount of income left after subtracting deductions and exemptions from gross income.

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DOK Level 2: Skill/Concept

Front

Which of the following best describes a progressive tax system? Options: A tax system where everyone pays the same rate, regardless of income. A tax system where the tax rate decreases as the taxable amount increases. A tax system where the tax rate increases as the taxable amount increases. A tax system that taxes all goods and services at the same rate.

Back

A tax system where the tax rate increases as the taxable amount increases.

Tags

DOK Level 2: Skill/Concept

Front

What is the standard deduction?

Back

A fixed amount deducted from income that varies by filing status and is adjusted annually for inflation.

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DOK Level 2: Skill/Concept

Front

Which of the following is an example of a regressive tax? Income tax, Sales tax, Estate tax, Corporate tax

Back

Sales tax

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DOK Level 2: Skill/Concept

Front

What does "withholding" refer to in the context of income taxes?

Back

The act of an employer deducting tax payments from an employee's paycheck and sending it directly to the government.

Tags

DOK Level 2: Skill/Concept

Front

What filing status might a taxpayer use if they are unmarried and support a child who lives with them?

Back

Head of Household

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DOK Level 2: Skill/Concept

Front

Which of the following taxes is considered proportional? A tax that charges 10% on all income levels. A tax that charges higher rates as income increases. A tax that charges lower rates as income increases. A tax that only applies to luxury goods.

Back

A tax that charges 10% on all income levels.

Tags

DOK Level 2: Skill/Concept

Front

How does the IRS define "taxable income" for an individual?

Back

It is the income after subtracting allowable deductions and exemptions.

Tags

DOK Level 2: Skill/Concept